The Atlanta retail market continues to be robust, with vacancy tightening in key submarkets and rents trending upward. Overall vacancy fell slightly from 7.1 percent during the fourth quarter of 2015 to 7 percent in the first quarter of 2016, according to CoStar. However, the decline is greater in hot submarkets such as Buckhead and Central Perimeter that boasted vacancy rates as low as 2.8 percent and 3.2 percent, respectively, in the first quarter. Demand Up, Supply Tightens There is still a disconnect between supply and demand, especially in strong trade areas, and many retailers that wish to enter or expand in the market are finding it difficult to do so. Rents are escalating by 10 percent to 15 percent because of the increased competition for space and the high cost to build new developments is attributable to escalating land costs. During the first quarter, 21 buildings totaling 300,174 square feet were delivered, according to CoStar, and at the end of the first quarter, 1.73 million square feet of retail space was under development. As Atlanta can deliver more of the space that’s under construction and open up availability, rent is expected to continue to climb. Health and Fitness Food …
ATLANTA — Brand Properties plans to develop Northside Midtown Medical, a 12-story, 170,000-square-foot medical office building in Midtown Atlanta. Located at 1130 W. Peachtree St. near 13th Street, the Class A building will be anchored by Northside Hospital, which will operate the Northside Imaging Center, primary care offices, cardiology services and an urgent care outfit at the property. Brand Properties plans to deliver Northside Midtown Medical in mid-2018. Northside is a healthcare delivery system with three not-for-profit hospitals in Atlanta, Cherokee County and Forsyth County and more than 150 outpatient services across Georgia.
ROCKLEDGE, FLA. — Continental Realty Corp. has purchased Polo Glen Apartments, a 252-unit, garden-style apartment community located at 3603 Middleburg Lane in Rockledge. The Baltimore-based company acquired the asset from Pollack Shores via its Continental Realty Fund IV for $38 million. Built in 2008, Polo Glen is situated near cities such as Cocoa Beach, Melbourne and Viera and features units averaging 1,200 square feet. Unit interiors feature nine-foot ceilings, screened patios/balconies, cherry cabinetry and full-sized washers and dryers. More than 70 percent of the residences will feature ground-level entries. Community amenities include an interior lake with a lakeside walking path; clubhouse with a swimming pool and fitness center; car wash facility; outdoor barbecue area and fireplace; playground and tennis courts. Patrick Dufour, Scott Ramey, Kevin Judd and Ryan Crowley of ARA represented Pollack Shores in the transaction.
JACKSONVILLE, FLA. — NGKF Capital Markets has brokered the $23.8 million sale of the Stein Mart Building, a 10-story, Class A office property situated along the St. Johns River in downtown Jacksonville. Retailer Stein Mart occupies more than half of the 197,000-square-foot building, which was 93 percent leased at the time of sale to tenants such as Marks Gray PA and TD Bank. Built in 1985, the asset features a four-story atrium, pedestrian plaza, adjacent six-story parking garage, deli, laundromat, fitness center, conference room and banking facility. Lingerfelt CommonWealth Partners LLC purchased the property from Parkway Properties, which has owned the building since 2005. Michael Lapointe and Michael Lohmann of NGKF, along with Bryan Bartlett and Jim Sebesta of Phoenix Realty Group, represented Lingerfelt CommonWealth Partners in the transaction.
SEBRING, FLA. — Southern Management and Development LP (SMD) has broken ground on a new 43,690-square-foot Publix at Southgate Shopping Center in Sebring. The 101,621-square-foot Southgate Shopping Center is located at 2802-2940 U.S. Highway 27 S. Southgate’s other tenants include Bealls Outlet, Dollar Tree, Bank of America, CVS/pharmacy and additional restaurants and services. Boca Raton-based SMD has selected Cuhaci & Peterson Architects to design the new supermarket. SMD expects to complete the store’s shell and interior build-out this fall.
KNOXVILLE, TENN. — Campus Advantage and Pinecrest Partners have completed the construction of The Knox, a 382-bed student housing community located within walking distance of The University of Tennessee campus in Knoxville. Resident occupancy will begin Aug. 13, with some early move-ins scheduled for the first week of August. The property offers three-, four- and five-bedroom, fully furnished units with 42-inch flat screen TVs, granite countertops, in-unit laundry and cable television and high-speed wireless internet service. Community amenities include an open-air entertainment deck featuring two oversized hot tubs, grills, hammocks and an outdoor theater area; gated garage parking; 24-hour fitness center; coffee bar; and private study rooms.
MIAMI — Weingarten Realty (NYSE: WRI) has acquired The Palms at Town & Country, a 664,000-square-foot, open-air shopping center in Miami, for $285 million. WRC Properties, an affiliate of TIAA-CREF, is the seller, according to the Miami Herald. The property features 71 retailers including Publix, Kohl’s, Nordstrom Rack, Dick’s Sporting Goods and Marshalls. National retailers comprise 87 percent of the revenue for the property. The Palms at Town & Country is located on 70 acres at 8505 Mills Drive, and was renovated in 2010. JLL is the exclusive leasing agent for the property, and has created events such as the Festival De Primavera Fashion Show, the Palms Restaurant Crawl and the All-American 4th of July Celebration that attracts thousands. Weingarten Realty’s stock price closed Thursday, July 28 at $42.67 per share, up from $34.62 per share a year ago, a nearly 19 percent increase. Weingarten Realty, a Houston-based REIT, is an owner, manager and developer of shopping centers throughout the United States.
PROSPECT, KY. — Passco Cos. LLC has purchased The Veranda, a 236-unit apartment community located at 9506 Civic Way in Prospect, a suburb of Louisville. Passco acquired the property from The Veranda’s developer, Bristol Development, for $50.4 million. Built in 2015, the community is situated within Norton Commons, an upscale master-planned development that features Norton Hospital. The Veranda features 20 different floorplans and unit interiors include wood flooring, gourmet kitchens with granite countertops, stainless steel appliances, ceramic tile backsplashes and custom cabinetry. Craig Collins of Cushman & Wakefield/Commercial Kentucky, along with Mike Kemether of Cushman & Wakefield’s Atlanta office, represented Bristol Development in the transaction.
MARSHALL COUNTY, MISS. — Atlanta-based Ridgeline Property Group is entering the Memphis industrial market with the development of I-269 Logistics Center, an industrial park situated in Marshall County in Mississippi near the Tennessee-Mississippi border. The project will span up to 3.5 million square feet of Class A distribution and industrial space. Ridgeline has formed a joint venture with the owner of the 328-acre site, Mississippi Land Holdings LLC, an investment vehicle owned by the CK Pearl family of funds and managed by Crestline-Kirchner LP. The site is situated at the intersection of Goodman Road and the new I-269 beltway. The joint venture has selected Dave Curran and Matt Weathersby of Cushman & Wakefield/Commercial Advisors to market I-269 Logistics Center for lease.
RALEIGH, N.C. — TradeMark Properties has arranged a 55,000-square-foot lease transaction with Harris Teeter at Seaboard Station, a 92,000-square-foot shopping center that anchors the north end of downtown Raleigh. The shopping center is located adjacent to William Peace University off Peace and Halifax streets. Seaboard Station has been fully occupied since its sale in 2013. TradeMark Properties, the management and leasing agent for Seaboard Station, has partnered with Lowe Enterprises to develop expansion and development concepts for the project to allow for more retail space and the possibility of apartment residences and/or lodging. Built in the 1940s, Seaboard Station was originally a train depot and warehouse complex.